Loyal is supported in its work by a group of 800+ advisors, who provide three kinds of help:
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Scroll to topLoyal Venture Advisors Inc (‘LVA’) is an Ontario corporation with two directors: Kamal Hassan and Michael Kosic. LVA has a management contract with Loyal VC LP (‘Loyal VC’). The term ‘Loyal’ can refer to both or either of LVA and Loyal VC.
Loyal has three kinds of advisors - company, fundraising and fund advisors - who advise and support (i) investee companies, (ii) LVA on fundraising, and (iii) LVA on strategy/operations. Contribute what and how you wish.
No. Loyal sources companies through partnerships with Founder Institute (‘FI’) and INSEAD. Please do refer INSEAD founders to us. The only other deal source Loyal has is its investors. If investors trust Loyal with their money, Loyal trusts them to refer a company in.
No. Help in any way you like, at any time. Compensation is based on your contribution, not your official ‘title’. You could mentor 20 companies and introduce no investors, or vice-versa.
Yes, you will be paid, and only when Loyal is, which in many cases is 7-10 years later. So the payment is real, unknown, and contingent. It will pay towards retirement, not today’s lifestyle.
Yes you can. Loyal believes generalists can still provide good advice to companies.
Advisors are expected to make at least 1-2 hours available every two months or so. The time may not be needed: please be responsive if a problem or company comes up that may be a good match for you. You also may have check-ins with Loyal yearly or so.
No. The exact time commitment is up to you, 1-2 hours every few months is a minimum. You may find a company that fascinates you, and end up spending 5+ hours a month with them, or even end up joining the team. Note that Loyal will only compensate you for the first 20 hours per company. Thereafter the company (who will likely want to do so) must compensate you directly.
The next step up is a ‘venture partner’ role, which involves working 1-3 days per week. This could be a step towards full time work, or a goal in itself. For more details, check here.
Most advisors will simply take one or two calls with a company and be done. Some advisors may find a company matches their interests and skills and end up supporting a company over multiple months. If you are an excellent match for a company, Loyal may even ask you to represent Loyal’s interests by joining the company’s advisory board or board.
Yes, you are welcome to spend more time should you wish. This will be appreciated, and is not expected. Please make sure Loyal knows if you end up spending more than two hours per month with any company, or more than 5-10 hours in total.
Loyal will look into Loyal or the company obtaining D&O insurance for you, and the company will provide suitable compensation directly to you for your added role. You will be free to accept or decline any position.
Yes. You are welcome to advertise your role as ‘Advisor’ at Loyal on your LinkedIn or elsewhere. Please only use this title, and no other title, to avoid confusion. Please also be sure to link to Loyal’s official LinkedIn page.
You can resign from your role as an advisor at any time. Note that the confidentiality obligations of your contract, and LVA’s future obligation to pay you for any past contributions, still apply. You are recommended to reach out to Loyal yearly after your resignation, to ensure your contact details are up to date and to confirm if you have any compensation owing.
Yes, Loyal can remove you as an advisor at any time. If you do not contribute any year, you will simply not be compensated for that year, so there is not a large incentive for Loyal to remove you. Being removed as an advisor does not impact compensation for past contributions, (unless your reason for removal causes Loyal to doubt the veracity of your past contributions)
This is a short call to see how things are going, and ensure that Loyal is aware of all of your contributions during the year. If you are no longer an advisor Loyal recommends you still contact Loyal yearly, to keep your contacts up to date and confirm if you have any compensation owing.
Advisors are compensated based on their impact. Loyal VC takes 20% of the carry it earns as a venture capital firm, and shares it across all advisors and partner groups (INSEAD and Founder Institute) who support a company based on their contribution to that specific company. For advisors who introduce investors, Loyal takes some of the management fees to make a donation to the charity of your choice, which can be you.
Scroll to topLoyal will donate your compensation to the charity of your choice. If you don’t tell them what that charity is, it will go to their charity of choice, currently INSEAD’s ‘Force for Good’ campaign.
FI and INSEAD are sourcing partners, and support companies. They receive a quarter to half of the 20% of carry’ in return, on their specific companies. Advisors get the remainder.
The split for each category of advisor is outlined in the FAQ for Company Advisors, Fund Advisors, and Fundraising Advisors. The diagram below shows an example split for company advisors.
LVA takes carry at two times: when an investor (a limited partner or ‘LP’) sells their holdings in Loyal VC, and when there is a cash distribution from a company. The largest compensation for advisors will typically happen when a company exits/has a distribution.
All partner organizations and advisors, including advisors who advise Loyal companies, share 20% of the ‘carry’ that is generated for Loyal by those specific companies. This 20% is split between company advisors, fund advisors and partner organizations.
Loyal wishes to compensate advisors retroactively for what the advisor actually did to help the companies (or the fund). Loyal can commit to how much the firm will share with all advisors. Loyal cannot promise in advance how much you will get vs. other advisors, because Loyal does not know in advance how much you will contribute.
LVA typically takes 20% of any profit earned as a ‘carry’, though less from early investors. Typically this means advisors will share 20% of 20%, i.e., 4% of the profit, after the LP has been repaid their initial investment. The total will vary depending on the returns.
No. Loyal feels companies will be more honest when their feedback is not shared.
Loyal currently intends to assign half the compensation at the discretion of the company, one quarter based on hours spent weighted by advisor score, and one quarter at Loyal’s discretion (please keep us up to date on your work). Loyal reserves the right to change this formula.
Loyal will use the email address they have on file. If you ever don’t hear from Loyal for a two month period, check your spam, and email us, to be sure we have the best email for you.
Loyal will pay the advisor on request, or whenever the transaction fees to Loyal to send the payment amounts to less than 5% of the accrued amount owing.
Yes, you can. Please notify LVA, and deliver 10+ hours of free service before discussing this, and build the rest (to 20 hours) into your contract. Loyal asks that you share a finder’s fee with the fund in thanks for helping you generate this business. The amount is at your discretion. Loyal shares 20% with advisors who make revenue generating introductions for Loyal.
Loyal will make reasonable efforts to reach you on all contacts that you give to Loyal, including email and LinkedIn. If Loyal can’t reach you after 12 months, they may take silence as an instruction to donate any funds owing you to the charity of your, or Loyal’s, choice. Loyal recommends you keep your email up to date, even after you stop working with Loyal.
The amount you pay is at your discretion. Pay whatever you feel is fair.
Advisors are free to work as little or as much with Loyal as they wish, on any or all of the above. All engagements are ‘opt-in’: you either volunteer, or are asked if you are interested and available to help with a specific item. You can always say yes or no, giving you the ability to select to do only work that you personally find rewarding and impactful.
Scroll to topCompanies will find your AirTable profile on a private page (loyal.vc/advisors: please select good tags), or your name may be suggested by the Loyal team. From there you will typically get an email from our software tool, Bridge, which explains what the company is looking for, and asking if you would like to speak.
To reach out to a company, please login to Loyal’s portal and then click “Portal” in the top bar menu, then “View Loyal Portfolio” and then the ‘Request an Introduction’ link for any company that you’d like to speak with. This will open a web app called Bridge that will then arrange a tracked, double opt-in introduction.
The coloured bar at the top of each company’s profile will let you know if Loyal has followed on, as we have in 80+ companies to date. Note that you sometimes have the ability to have more impact earlier in a company’s development.
Loyal is fine if the company contracts with your firm and pays directly for the time of your colleagues. Loyal does ask that you give or build in a number of hours of free service, so that the company sees you as a free extension of Loyal, not someone hunting for business. Please also notify Loyal so your contingent compensation can be adjusted to be fair to everyone.
Loyal is still finalizing this process. For now we use a web application called Bridge, that will automatically prompt you for feedback two weeks after the interaction. Please tell us time spent in your reply. If you work more closely thereafter, we would appreciate an email every few months with an update. While recording your interactions is optional, doing so makes it easier for Loyal to be aware of, and compensate you for, your time.
Company advisors split half to three quarters of the carry remaining after partners have been paid. Note that partners are paid because in principle they are also advising and supporting companies, so they contribute like advisors do and should be compensated as such.
Some Loyal advisors may be local leaders or have other roles in Founder Institute. In this case, FI may share some of the partner exit fees with the local leader. You should discuss this with, and sign an agreement with, FI to receive your piece of the partner share.
Company advisor exit fees will be distributed across all advisors who have directly mentored and advised that specific company, based on what is currently three factors:
If a company is sold with Loyal VC receiving $30M and LVA receiving 20% in carry, then $1.2M (20% of 20% of $30M) will be shared among all partners and advisors who contributed to that company. Company advisors would receive $600-900K in total. If split evenly ten ways, each company advisor would get $60,000-90,000. Advisors would get >$2,000 per hour worked.
Loyal reserves the right to modify the formula used to split funds between advisors and partners, subject only to maintaining the ‘20% of carry’ commitment.
If investors sell $2M worth of holdings in Loyal VC, and LVA receives 20% of the second milion in carry, then $40K (20% of 20% of $1M) will be shared among all partners and advisors. Company advisors will split $20-30,000. Assuming any advisor earns 1% of this (5x their weighting with 500+ advisors) you will receive $200-300. Company advisors typically only get substantial payments when their companies exit, since money is split many fewer ways.
Loyal compensates fund advisors for non-fundraising work at their discretion. You should discuss compensation on a case by case basis before doing any direct work for the fund.
As an advisor, you can help Loyal with funding and, if it is legal, Loyal will pay you 2% of the funds you raised.
Scroll to topYes. Contributions can be as simple as introducing Loyal or passing materials to one of your contacts. You may also support Loyal further by providing references to and supporting both parties through the process. Note that units in Loyal VC LP can only be offered to accredited investors, and cannot be marketed to the public.
If it is legal (here is a guide to the appropriate legislation in the US) for you to receive and Loyal to pay you a contingency fee, e.g., if you are licensed as a broker or dealer in your jurisdiction, Loyal can give you a simple contract that pays you 2% of the funds raised, payable 1% at 6 months, 1% at 24 months. Otherwise such contracts may not be legal for you.
Loyal reserves the right to cap the amount paid at 2% of the funds received, and split this amount between multiple parties who contribute to an introduction. If the parties themselves cannot agree on a suitable split, Loyal reserves the right to unilaterally decide on and pay what they in their opinion feel is an equitable split.
Loyal reserves the right to, at its sole discretion, offer individual advisors a contract, renewable at Loyal’s discretion, for a fixed monthly amount as chosen by Loyal, to provide general investor marketing services.
Loyal may, at their discretion, choose to make a contribution to your charity of choice, or if you do not select a charity, Loyal’s charity of choice.
LVA currently charges a 2.0% management fee annually..
The section addresses questions regarding the terms and conditions related to confidentiality, allocation of management fees, fees for selling services to portfolio companies, payment obligations for job placements, referral fees for encountering Loyal companies outside of Loyal, consequences of not paying referral fees, and the assurance that Loyal will fulfill promised advisor payments regardless of the circumstances.
Scroll to topOur contract with the companies also has a 5 year term and we want both sets of contracts to match. Early stage companies can be very sensitive around their corporate information, possibly because it can take the companies years for their businesses to mature fully.
The contract has general wording, to give Loyal flexibility. Loyal has publicly made the ‘20% of carry’ commitment to all advisors, so has a strong incentive to keep it. And more generally, Loyal’s reputation among the communities in which it operates is crucial to fund success.
Loyal believes in sharing revenue with those who help earn it. Loyal shares 20% of its revenue with advisors, because you help them earn it. Loyal thinks it is fair for you to follow the same principle and share a (similar) portion of any fees you receive back.
No. That wouldn’t be fair. Pay an amount that you ‘deem equitable’. You might be guided by HR standards, where a low touch introduction platform is paid one month’s salary, for instance.
No. If you think Loyal didn’t contribute at all to your getting the client, then it wouldn’t be ‘equitable’ to pay Loyal anything. If Loyal helped, then consider paying Loyal accordingly.
No. There are no grounds to sue, since you can simply state you deem whatever you paid to be equitable. And Loyal believes they have a moral obligation to pay you promised and earned advisor payments, however you treat them. Loyal could only choose to terminate the advisor relationship with you, which would mean you wouldn’t source future clients through them.
No. Loyal asks you to share 20% or “as otherwise deemed equitable in Advisor’s [your] sole discretion”. You can pay Loyal a different amount, if you feel that is more equitable. Loyal trusts you to be fair, as you trust them to be. The advisor contract is built on mutual trust.
Loyal has 18 Venture Partners (VPs) and 2 Managing Partners. You can read more about each VP on our team page.
Scroll to topA venture partner is a member of the Loyal team, who works for typically 1 day per week. This role could be a proving ground for future full-time work, or an ongoing role for someone who wants to contribute significantly, without doing all of the work expected of a full partner.
Venture partners get paid a monthly consulting fee equal to one fifth of the GP salary, and receive ownership in the management company, in addition to getting a share of the carry, and other incentives paid to advisors. An advisor could still earn more compensation than a VP..
To be a VP, you must work at least 6-8 hours per week with Loyal.
Every VP is expected to contribute to Loyal in multiple ways. While a VP may emphasize one role more, they are expected to contribute in most ways each month:
That is fine, so long as you contribute to Loyal’s operations in other ways. You can still focus most of your time on the activities you prefer. If you want to spend all of your time only on the activities you prefer, you should remain an advisor.
Yes, with conditions. You must first invest in, and become a limited partner in, Loyal VC LP. You will then be able to invest personally in Loyal deals, under the same conditions as any other limited partner, e.g., your money cannot displace that of Loyal.
Like any advisor you are expected to do a minimum of 20 hours of free work with each company first, to be compensated via the Loyal carry. Once you have exceeded that, extra compensation is possible. Please notify Loyal each time you reach 10+ hours in any company. Note that once you do a deal directly with a company you are conflicted, and can no longer act as the lead for that company.
Loyal does not yet have a policy for this. Please discuss with Loyal on a case-by-case basis.
To become a VP, you must follow this process, expected to take four months:
At the end of the process you and Loyal will mutually discuss if it makes sense to add you to the firm as a venture partner.
You will be compensated for all of the above work per the standard advisor contract. Specifically, the mentoring, investor introductions and operational improvement projects will all be compensated under the standard advisor contract.
Currently, VPs get paid the same pro-rata salary as partners, and have less equity in the management company. This structure may continue in the short term.
No. You must work with Loyal for at least 6 months as a VP before becoming a full partner. Loyal VC is an evergreen fund: it is good for both sides to get a chance to work closely together and get to know each other before making a multi-year commitment. This is a prerequisite, not a guarantee. Most VPs will never become GPs - nor do they necessarily want to.
The foregoing is a summary discussion of certain frequently asked questions relating to LVA’s advisory program and Advisor Agreement. This summary is provided for general informational purposes only, and may be subject to change. The information provided does not purport to address all matters relevant to Loyal, the advisory relationship or the LVA Advisor Agreement in its entirety, nor does it purport to constitute a sufficient basis for advisors to determine whether to enter into any agreement with LVA.
Furthermore, this summary is qualified in its entirety by the terms of the Advisor Agreement, does not provide any representations or warranties related to such agreements, is not legally binding and is not a substitute for a review of the full terms of the Advisor Agreement. While this summary is offered in good faith and in the hope that it may be of use to potential advisors, it is not guaranteed to be correct, up to date or suitable for any individual’s or company’s purpose. LVA and Loyal VC accept no liability in respect of this information or its use, and by using this summary you agree to hold LVA, Loyal VC and their affiliates free of any liability related to this summary.
Each company or individual is solely and independently responsible for investigating the facts relevant to its circumstances, including all matters addressed in this summary, and for determining what other sources of information to consult. Each company or individual is strongly urged to review the Advisor Agreement in detail, consult with their legal, financial, tax and other advisors, and ask any additional questions they may have of LVA prior to signing any agreements. In the event of any conflict or discrepancy between this summary and the terms of the Advisor Agreement, the terms of the Advisor Agreement shall prevail.
